(WDNews) – The federal government will launch a new student loan forgiveness program next year under President Donald Trump’s 2025 “big, beautiful bill,” which overhauled several federal student loan programs.
The Repayment Assistance Plan, or RAP, will replace most existing income-driven repayment plans and is designed to make loan forgiveness more accessible for borrowers. The program is scheduled to roll out on July 1, 2026.
Details on eligibility, repayment terms, and how RAP will differ from current programs are still being finalized. Federal education officials say the plan aims to simplify repayment for borrowers while encouraging timely payments.
Trump described the program as part of broader efforts to reduce the burden of student debt and expand options for borrowers.
Critics of the new plan argue that it may not fully address the growing student debt crisis and could leave some borrowers with fewer protections than under previous programs. Supporters say it streamlines repayment and provides a clearer path to forgiveness for millions of Americans.
More information on RAP, including application instructions and eligibility guidelines, will be released by the Department of Education in the months leading up to its launch.
